CME Sues CFTC Over Approval of Kalshi’s Perpetual Futures Contracts
CME filed a lawsuit challenging CFTC’s approval of Kalshi’s perpetual futures contracts.
Why it matters: This lawsuit questions how prediction markets are regulated and could reshape oversight of innovative derivatives. Legal professionals must monitor the evolving regulatory environment and its impact on financial contracts tied to events.
- CME filed the lawsuit on June 18, 2026, against the CFTC’s November 2023 approval of Kalshi’s perpetual futures contracts.
- The contracts allow betting on political control of Congress, a market previously restricted by congressional reforms.
- CME argues Kalshi’s products circumvent post-2008 financial crisis regulations and violate the Commodity Exchange Act.
- CME claims Kalshi earned $1 billion after CFTC approval, though this figure is not independently verified.
The Chicago Mercantile Exchange (CME) sued the Commodity Futures Trading Commission (CFTC) on June 18, 2026, contesting the regulator’s approval of Kalshi’s "perpetual" futures contracts. These contracts, allowed since a final decision in November 2023, enable trading on events such as which party controls the U.S. Congress.
CME alleges that by approving Kalshi’s products, the CFTC bypassed regulations instituted by Congress after the 2008 financial crisis designed to limit event contracts. CME’s filing states, "CME cannot stand idly by as CFTC disregards its statutory obligations and ignores decades of precedent" (Courthouse News).
The lawsuit contends these contracts resemble event contracts, which federal reforms had intended to restrict due to risks of market manipulation and conflict with public policy. CME’s argument highlights concern over incentives for bad actors in such markets (Reuters).
The CFTC’s move to approve Kalshi stirred opposition among lawmakers and financial stakeholders worried about the implications of political event betting. CME’s suit requests the court to vacate the CFTC’s authorization and declare Kalshi’s contracts illegal under the Commodity Exchange Act (Bloomberg).
While CME claims Kalshi has generated $1 billion since approval, this figure remains unverified externally. No public response from Kalshi or additional comments from the CFTC have been released as of June 2026.
This case sets an important precedent for the regulation of emerging financial products in prediction markets and may redefine the scope of permissible futures trading.
By the numbers:
- June 18, 2026 — Date CME filed lawsuit against CFTC
- November 2023 — CFTC approved Kalshi’s perpetual futures contracts
- $1 billion — Claimed earnings by Kalshi post-approval (not independently verified)
Yes, but: Kalshi and the CFTC have not publicly responded to the lawsuit, leaving regulatory intentions unclear.
What's next: Court proceedings will determine the legality of perpetual futures, potentially affecting future regulatory policies on prediction markets.